Conclusions

We have in this thesis developed a model for valuation of Internet services – the GRT model. The model is a tool for identifying and valuing costs, benefits, and utilities that directly or indirectly are derived from an Internet service. Although time consuming when used properly, the model has several advantages. The model has a clear structure for how the valuation process may be carried out which decreases the general level of abstraction, thus making it
easier to identify costs and benefits as well as simplifying quantification of the utilities, especially those of a qualitative nature.

Using this model, companies can more accurately find out to what extent an IT investment contributes, or could contribute, to the company. Alternatively, the model can be used as basis for deciding whether a proposed investment should be made or not. In this case, the model might also be useful in another way; during the processing of the model, the market situation will be better known and potential benefits and utilities might show that would not have been identified without the model. Thereby one does not only better find out whether the investment will be successful or not, it is moreover possible to increase the chance of the investment becoming so. In addition,
costs that would not have been identified without the model might be identified using our model, although the costs to a higher degree are given in advance, i.e. they cannot be affected to the same extent as potential benefits and utilities.

The GRT model has no intention of measuring the exact payoff of a service. It is to be used for providing more
accurate estimations of the results. The accuracy of the results will obviously rely on the accuracy of the numbers entered into the user constructed formulas. The complexity of evaluation and valuation of IT investments also suggests that simulations and risk- and “what-if” analyses should be made before an investment decision is made.